Carry out business activity and instalment activity statement tasks
TASK 1
William operates a business with an annual turnover of $3,000,000. Details for January 2018trading are as follows (all amounts include GST):
|
Cash Sales
|
|
19,591
|
|
Cash Purchases
|
|
8,800
|
|
Credit Sales
|
Invoiced
|
Cash Received
|
|
B Hinde
|
5,500
|
-
|
|
C Moore
|
7,700
|
3,300
|
|
D Licheous
|
16,500
|
9,900
|
|
Credit Purchases
|
Invoiced
|
Cash Paid
|
|
B Brown
|
4,400
|
8,800
|
|
WWhite
|
14,300
|
7,700
|
|
B Black
|
1,650
|
3,300
|
Required:
a) Discuss William's options regarding using the cash or accruals method of accounting for GST.
b) Calculate William's GST liability under both cash and accrual methods for the month of January 2018.
TASK 2
Walter Melon operates a fruit shop and cafe. The business accounts for GST on a cash basis and has chosen to report GST monthly. PAYG income tax instalment and PAYG tax withheld are reported quarterly.
The following page(s) are the extracts of the businesses Cash Receipts Book and Cash Payment's Book for the month of February 2018.
Required:
Complete the Business Activity Statement for the month of February 2018 by extracting the data from the Cash Receipts and Cash Payments Book.
Cash Receipts Book - Extract of last page in Month of February 2018
|
Date
|
Details
|
Inv/ Rec #
|
Total Receipts
|
Total Sales (including any GST)
|
Amount of GST collected
|
Non-capital amount (excluding GST)
|
Capital amount (ie asset sales excluding GST)
|
GST-Free
Sales
|
Input Taxed Sales
|
|
Totals b/f
|
|
|
162,250.00
|
162,250.00
|
9,800.00
|
98,000.00
|
-
|
54,450.00
|
-
|
|
15/02
|
Fruit & Vege Sales
|
|
3,300.00
|
3,300.00
|
|
|
|
3,300.00
|
|
|
17/02
|
Café sales
|
|
9,900.00
|
9,900.00
|
900.00
|
9,000.00
|
|
|
|
|
20/02
|
Fruit & Vege Sales
|
|
2,750.00
|
2,750.00
|
|
|
|
2,750.00
|
|
|
25/02
|
Café Sales
|
|
7,425.00
|
7,425.00
|
675.00
|
6,750.00
|
|
|
|
|
28/02
|
Bank Interest
|
|
440.00
|
440.00
|
|
|
|
|
440.00
|
|
Total
|
|
|
186,065.00
|
186,065.00
|
11,375.00
|
113,750.00
|
|
60,500.00
|
440.00
|
Cash Payment's Book- Extract of last page in Month of February 2018
| Date |
Detail |
Chq # |
Total Payments |
Non-Capital (Including any GST) |
Capital (Including any GST) |
GST |
Inventory |
Phone |
Bank Fees |
Wages |
Super |
P&E |
|
|
|
|
|
|
Claim |
|
|
|
|
|
|
| Total b/f |
|
|
32,020.00 |
25,883.00 |
2,750.00 |
2,265.00 |
23,718.00 |
150 |
|
3,100.00 |
287 |
2,500.00 |
| 2-Oct |
Fruit Mkt |
1103 |
550 |
550 |
|
|
550 |
|
|
|
|
|
| 2-Nov |
Food Supplies |
1104 |
1,100.00 |
1,100.00 |
|
100 |
1,000.00 |
|
|
|
|
|
| 18/02 |
R Regan |
1105 |
875 |
|
|
|
|
|
|
875 |
|
|
| 22/02 |
Cash Register |
1106 |
1,650.00 |
|
1,650.00 |
150 |
|
|
|
|
|
1,500.00 |
| 25/02 |
P S/Fund |
1107 |
360 |
|
|
|
|
|
|
|
360 |
|
| 28/02 |
Bank Fees |
DD |
10 |
10 |
|
|
|
|
10 |
|
|
|
| Total |
|
|
36,565.00 |
27,543.00 |
4,400.00 |
2,515.00 |
25,268.00 |
150 |
10 |
3,975.00 |
647 |
4,000.00 |
TASK 3
Adler Sales Pty Limited is registered for GST as a cash payer and has chosen the option to report and calculate GST every quarter. You have been asked to complete the quarterly BAS. You enter the data below into two forms prior to completing the BAS to ensure that GST is calculated accurately.
The following data (GST inclusive where applicable) has been collected by Adler Sales Pty Limited for the period 01 October 2017 to 31 December 2017:
|
Account details
|
$
|
|
Sales of goods and services
|
55,000
|
|
Export sales
|
11,000
|
|
Sale of old printer
|
1,100
|
|
Interest received
|
660
|
|
Commercial rent received
|
27,500
|
|
Residential rent received
|
8,800
|
|
Business general expenses
|
33,000
|
|
Business stock purchases for resale purposes
|
9,900
|
|
Business council & water rates
|
770
|
|
Depreciation
|
4,400
|
|
Bank Fees
|
330
|
|
Purchase of a new printer
|
2,200
|
|
Wages & salaries (gross)
|
68,000
|
|
PAYG Withholding
|
15,750
|
|
Superannuation
|
6,290
|
|
Commercial rent expenses
|
3,300
|
|
Residential rent expenses
|
880
|
|
|
|
|
Commissioner's rate
|
4.75%
|
|
Fringe Benefits Instalment for the quarter
|
3,000
|
Required:
For the period 1 October 2017 to 31 December 2017complete:
a) GST classification worksheet
b) GST calculation worksheet
c) The business activity statement
TASK 4
From the following information, calculate Net GST Payable / Refundable for George's GardenShop. All figures include GST.
Tax invoices issued $ 7,986
Tax invoices received $ 5,500
Goods returned from customers $ 880
Goods returned to suppliers $ 748
TASK 5
Robert the builder is registered for GST. He purchases 6,000 bricks for $6,600. Robert uses 4,500 bricks as part of a building job, and uses the remaining 1,500 bricks for private purposes for his home. Calculate the input tax credit that Robert would be entitled to claim for GST purposes.
TASK 6
You are given some unrelated examples of mistakes/ omissions that were made on prior BAS reports. Advise whether they are errors requiring lodgement of a Revised Activity Statement or adjustments (increasing / decreasing) to account for when lodging the next BAS.
|
Mistake / Omission
|
Select one appropriate solution from the following:
|
|
You have just discovered that 2 years ago you left out $22,000 of taxable sales from the BAS
|
|
|
A previous purchase of $16,000 included in a prior BAS has been cancelled
|
|
|
You have failed to claim input tax credits on a purchase invoice of $1,100 in the last BAS
|
|
|
A sale of $3,300 reported in a prior BAS has become taxable
|
|
|
A taxable sale of $1,650 from the last quarterly BAS has now been cancelled
|
|
TASK 7
GraceWalker operates a small business and receives investment income. He accounts for GST and PAYG Instalments on a cash basis, reports GST annually and reports PAYG instalment income quarterly.
This is a list of revenue (GST inclusive where applicable) received for the October - December 2017 quarter by Grace:
|
Sales
|
$ 55,000
|
|
Commercial rent received
|
$ 11,000
|
|
Residential rent received
|
$ 8,800
|
|
Interest received
|
$ 6,600
|
|
Dividend income
|
$ 3,300
|
|
Sale of business printer
|
$ 990
|
|
Total Revenue
|
$ 85,690
|
Required:
a) Calculate the PAYG instalment income.
b) Calculate the PAYG income tax instalment assuming a PAYG income tax instalment rate of 5.0%
TASK 8
Fancy Fast Cars Pty Ltd is in the business of selling motor vehicles. A luxury motor vehicle is made available for sale and is priced initially at $81,500 (including GST). Based on the 2017/2018 luxury car tax threshold of $65,094 and LCT rate of 33%:
Required:
Calculate the Luxury Car Tax (LCT) amount and the new selling price of the vehicle including the Luxury Car Tax.
TASK 9
Casellan Wine Wholesalers is voluntarily registered for GST and has not made an election to pay GST by instalments, hence has chosen to report and pay / claim a refund of GST annually. The tax agents have advised that for the 2016/2017 financial year the business is required to lodge its income tax return by 15th May 2018.
During 2016/2017 it derived ‘assessable dealings' from the sale of its taxable wine supplies amounting to $72,775 (including GST and WET).
Required:
a) Calculate the WET payable.
b) Advise the due date for lodging the annual GST return and paying any amount owing on that return.
TASK 10
Minion Miners Pty Ltd mines sand to use in landscaping. It dominates the sand mining industry and has a GST turnover of more than $20 million dollars. Due to this they must report and pay GST monthly.
The business records show that they used $517,650 of diesel at $1.45 per litre and $211,200 of unleaded petrol at $1.28 per litre for the business excavations for the month of February 2018.
The diesel and unleaded petrol used in excavators is eligible for fuel tax credits. The current fuel tax credit rate for fuels used in mining business activities are:
Diesel 38.6 cents per litre
Petrol 38.6 cents per litre
Required:
a) Calculate the fuel tax credit Minion MinersPty Ltd may claim.
b) Advise the due date for lodging the February 2018 monthly BAS and paying any amount owing on that activity statement.
TASK 11
a) Registered BAS Agents can charge a fee for providing BAS Services to a third party. In this context, what is a BAS service?
b) The Code of Professional Conduct sets out the professional and ethical standards required of registred tax and BAS agents. The Code of Conduct includes a number of core principles.
Required: research and list 5 of these core principles.
c) Privacy Act regulates how personal information is handled.
- What is considered personal information under the Privacy Act?
- Give examples (at least 3).
Note: the information available on the Office of the Australian Information Commissioner (OAIC) website may assist you in answering this question.
Attachment:- Template.rar